Purchase Solution

Interpreting Normal Distribution

Not what you're looking for?

Ask Custom Question

Select the correct answer and explain briefly why:

11. The price-to-earnings ratio for firms in a given industry is distributed according to normal distribution. In this industry, a firm with a standard normal variable value of Z=1:
A. Has an average price-to-earnings ratio
B. Has a below average price-to-earnings ratio
C. Has an above average price-to-earning ratio
D. May have an above average or below average price-to-earnings ratio

12. The internal auditing staff of a local manufacturing company performs a sample audit each quarter to estimate the proportion of accounts that are delinquent more than 90 days overdue. The historical records of the company show that over the past 8 years 14 percent of the accounts are delinquent. For this quarter, the auditing staff randomly selected 250 customer accounts. What is the probability that at least 30 accounts will be classified as delinquent?
A. 31.86%
B. 18.14%
C. 81.86%
D. 63.72%
E. 75.84%

Attachments
Purchase this Solution
Solution Preview

11. The price-to-earning ratio for firms in a given industry is distributed according to normal distribution. In this industry, a firm with a standard normal variable value of Z=1:
A. Has an average price-to-earnings ratio
B. Has a below average price-to-earnings ...

Purchase this Solution
Free BrainMass Quizzes
Measures of Central Tendency

Tests knowledge of the three main measures of central tendency, including some simple calculation questions.

Know Your Statistical Concepts

Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.

Terms and Definitions for Statistics

This quiz covers basic terms and definitions of statistics.

Measures of Central Tendency

This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.

View More Free Quizzes
Related BrainMass Solutions

  • Biostatistics and Scientific Methods

    This solution describes the scientific methods of collecting, processing, reducing, presenting, analyzing, and interpreting data.

  • Statistics Discussion Questions

    Explain normal distribution There is a family of normal distributions. Each distribution may have a different mean or standard deviation. The number of normal distributions is therefore unlimited.

  • Probability Distribution and Possible Outcomes

    If a distribution curve is bell-shaped, then this is a normal distribution. If a distribution is normal, its curve is bell-shaped. A normal distribution curve may be symmetric, left-skewed, or right-skewed.

  • Standard Deviation and Risk

    In a normal distribution, about 68% of the scores are within one standard deviation of the mean and about 95% of the scores are within two standard deviations of the mean.

  • Creating Surveys for Organizations

    Normal distribution, Poisson Distribution, Binomial Distribution, Uniform Distribution, Weibull Distribution, and other probability distribution functions are readily doable in Excel, which can help managers take important decisions.

  • Hypothesis Testing of Mean: P-value Method

    In this problem you are given: In Part 1 of 5 you found that the kind of problem is; a hypothesis test of the population mean; with the population sigma known; requiring us to use the standard normal distribution; with a right tail test .

  • Designing a Research Project

    Independent variable: smoking Dependent variable: health of the child Health could be operationalized as normal birth weight, normal weight by age, bronchiolitis and asthma.

  • Confidence Intervals an Hypothesis Tests for Mean

    Step 1: Set the Level of Confidence Level of confidence =1-a = 0.95 Step 2: Determine the type of distribution to be used This is a z-Distribution as sample size is 30

  • Resource planning and allocation: How many service technicians does it take?

    Since event durations are normal distribution, we can find the standard deviation "s" by interpreting it into standard normal distribution: 90% 0.02 1.42

  • Scores and Interpretations

    "It is important to understand that the z distribution forms a normal curve with a uni-modal, symmetric slope."

View More Related Solutions